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New Zealand’s largest rural lender has launched a lending package for farmers wanting to boost farm productivity by improving pasture and forage growth.
ANZ Bank’s Pasture Productivity Loan offers an interest rate of 4%* p.a with a maximum loan amount of $100,000. The maximum loan term is five years, principal reducing, and there are no establishment fees.
“Renewing pasture and forage is one of the key things red meat farmers can do to improve productivity and profit,” said Graham Turley, ANZ Managing Director Commercial & Agri.
“Increasing the quality and volume of feed grown can enable farmers to breed and finish more stock, improve climatic resilience and generate a greater return than the cost of capital.
“ANZ’s recent Privately Owned Business Barometer survey showed that more than 60% of red meat farmers aimed to increase production next year – and more than 80% of those planning to do so through renewing pasture and forage species.
“This loan will help ease the financial barriers to farmers investing in pasture, thereby increasing productivity and taking advantage of the enormous opportunities for New Zealand farmers from growing global demand for New Zealand red meat. The farmers taking part will have the advice and a plan to capture the return from the investments they are making.”
A report by ANZ found that New Zealand has the potential to capture $1.3 trillion more in agricultural exports between now and 2050 if targeted actions are taken - and the red meat sector is set to play a major part in realising this potential.
This initiative sits alongside ANZ participation in the Red Meat Profit Partnership – a government and industry programme to deliver sustainable, long-term profits for New Zealand’s red meat sector. ANZ will contribute significantly to the seven-year programme, in addition to its other activities supporting the farming sector.
The Pasture Productivity Loan is the latest lending initiative by ANZ to boost farm investment, drive production growth and support farm turnover.
Already in the market is ANZ’s Farm Development Package, which includes a low-interest loan for fulfilling compliance on effluent management, water quality management and water and energy conservation.
* Rate current at 24 February 2014. Interest rates are subject to change.
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